Bitcoin bull advises caution as cryptocurrency reaches record highs
Bitcoin’s surge to record levels has become “unsustainable,” according to one Wall Street pro.
The cryptocurrency reached a record $40,797 a coin on Thursday, up 38% this year, helping fuel the market capitalization for all digital coins to above $1 trillion for the first time.
“The target technical upside of $35,000 has been exceeded,” Scott Minerd, managing director and global chief investment officer at Guggenheim Partners, which oversees $270 billion in assets, tweeted on Sunday evening. “Time to take some money off the table.”
Bitcoin was trading down 5.14% at $33,519 per coin on Monday afternoon after reaching a session low of $30,568. Rival cryptocurrencies including ethereum and litecoin were also lower.
Although Minerd thinks the recent run-up in prices has gotten out of control, he remains bullish over the long term. Last month, he said the cryptocurrency should be worth about $400,000 per coin based on scarcity and other factors, including money printing by the Federal Reserve.
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Minerd wasn’t the only Wall Streeter to turn bullish on bitcoin in 2020. The cryptocurrency gained wider acceptance on Wall Street as it turned heads on Main Street.
Hedge fund manager Paul Tudor Jones said he was buying bitcoin as a hedge against inflation. Money managers Fidelity and MassMutual built their own stakes and BlackRock CEO Larry Fink said the cryptocurrency was on its way to becoming a bigger asset class.
Not everyone on Wall Street is bullish on bitcoin’s future.
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Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund with $138 billion in assets, expressed concerns that due to its volatility, bitcoin is neither a very good store of wealth nor a medium of exchange.
He did, however, concede that he “might be missing something.”